Effective Internal Audit Key to Improving Public Finance Management – Minister
Accra, Ghana – The Minister for Finance has underscored the importance of a strong and effective internal audit function in addressing many of the challenges confronting public financial management in Ghana.
Speaking at a recent event, the Minister noted that strengthening internal audit systems across public institutions is essential to improving accountability, enhancing transparency, and safeguarding public resources.
Addressing Public Financial Management Challenges
According to the Minister, several of the persistent challenges affecting public finance management can be traced to weak internal controls and ineffective oversight mechanisms within state institutions.
He indicated that a robust internal audit function has the potential to identify and address such challenges early, thereby reducing financial irregularities and improving compliance with established regulations.
Need for Institutional Reforms
The Minister emphasised the need to reposition the Internal Audit Agency (IAA) to better fulfil its mandate, noting that it must be strengthened to operate more effectively within the public sector.
He reiterated calls for reforms aimed at:
- Enhancing compliance and accountability
- Strengthening internal control systems
- Promoting effective risk management practices
- Ensuring value-for-money auditing
Recurring Audit Infractions
The Minister also expressed concern over recurring financial irregularities reported by the Auditor-General, stating that these reflect ongoing weaknesses in governance and accountability systems.
He stressed the importance of empowering internal auditors to perform their roles effectively and ensuring that those who fail to meet professional standards are held accountable.
Strengthening Oversight and Capacity
To improve the effectiveness of internal auditing, the Minister called for enhanced capacity building and professional development for internal auditors across the public service.
He further highlighted the need for stronger oversight mechanisms to ensure that audit recommendations are implemented and that institutions comply with financial management regulations.
Outlook
The emphasis on strengthening the internal audit function forms part of broader government efforts to improve public financial management, restore confidence in the use of state resources, and enhance institutional performance.
An effective internal audit system, the Minister noted, will be critical to ensuring fiscal discipline and achieving better governance outcomes across the public sector.